The company will not see financial benefits from the endeavor until the late 2020s

Central Japan Railway, better known as
JR Tokai, recently announced it will fund a major $45 billion
magnetic levitation (Maglev) railway system between Tokyo and
Chukyo. Even though the announcement is further commitment to
the developing technology by JR Tokai, it caused a 9 percent drop in
the company's stock on the Japanese financial market on
Tuesday.

Maglev trains will slowly phase out the famous
Shinkansen "bullet" trains, while also keeping people from
flying a lot of the same distances Maglev routes will cover.
The trains operate above the ground using an electromagnetic pull
that accelerates the train's speed by reducing friction between the
train and track.

Japan remains
dedicated towards a fully functional Maglev rail service in the
country by 2025. Japan, China and Germany are at the forefront
of Maglev technology, with Shanghai being the only city that has a
fully operational line. It is likely a second route will be
constructed between Nagoya and Osaka, though Tokyo and Nagoya remains
the most important goal.

JR Tokai currently owns the the
speed record for a Maglev train after a three-car test run in 2003
reached 581 KPH (361 MPH).

As current generations of trains
expire, and countries look towards future railway technologies for
transportation, some people believe Maglevs will begin to expand to
other nations.

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